Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 20/03/20

Are gold prices forming a bottom?


Gold prices have been falling steadily over the past few days. However, we suspect that a bottom is forming in the near term. But price action is consolidating near the 1481 handle. But we expect price to stabilize in the near term.

The Stochastics oscillator is in the oversold level currently and this could see a possible rebound in price. The resistance level at 1584 remains key for the short term. However, this can be targeted on a breakout above 1522.80 level. In the near-term watch price action to form a doji or any other reversal pattern.

Alternately, if price action fails at the level of 1481, then we expect further declines lower. The lower support level at 1440 will be the next target to the downside. This downside decline will confirm the long impending correction to the uptrend.

WTI crude oil rebounds off fresh lows

WTI 2003

Crude oil prices continued their descent this week, falling to fresh lows of $20 a barrel. But price action briefly rebounded off this level. This suggests a demand area this price handle. However, the downside pressure continues to remain strong. This could see a possible decline further.

The declines come amid the global demand falling sharply over the past few months due to the pandemic outbreak. In the near term, we expect crude oil to rebound to the 28.00 level. If resistance forms here, we expect prices to remain within a range of 28.00 and 20.00.

To the upside, a breakout above 28.00 handle will see a possible correction further. The next main upper resistance is seen at 42.00 handle. But given the market volatility, the direction of the commodity remains questionable.

Euro currency continues to slip sharply


The common currency is coming under strong selling pressure losing over 2% intraday. This comes as the U.S. dollar remains on a firm footing due to the safe haven bid. Price action has broken the trend line and this could continue the downside further.

For the moment, the EURUSD is seen retesting the April 2017 gap. We could see a possible rebound as a result. However, in the longer term, the Stochastics oscillator is showing a possible divergence.

Given the bullish divergence that is forming, we could expect to see a brief rebound. The price level of 1.0784 level is likely to act as resistance. A reversal off this level could put further downside pressure on the currency pair. Alternately, a breakout above 1.0784 level will see a test of the 1.1000 handle.

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